CVS continues its plan to close locations as the pharmacy chain recently announced less-than-stellar earnings.
The retailer is one of several pharmaceutical chains that have struggled in recent years. Could your local CVS be on the chopping block?
Here are some things you need to know before you head to your local store so you can continue saving money .
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1. CVS plans to close 900 stores
CVS announced in 2022 that it had a goal of closing around 900 locations between 2022 and 2024, with around 300 closures per year.
The company has already closed around 600 stores, so it’s still on track to close another 300 locations this year to meet its goal.
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CVS said store closings are part of a process as it evaluates issues like pharmacy density and customer traffic.
The evaluation of a store could include the surrounding population, buying patterns, and consumer health needs among other items to determine which stores will be shut down, according to a CVS spokesperson.
3. Target stores will also be affected
You may get your prescriptions at a CVS store inside your local Target, making it convenient to shop for home goods, groceries, and your prescriptions at the same time.
However, Target locations were also affected by CVS shutdowns earlier this year, as CVS even shut down some of those locations.
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4. What about CVS’s financials?
A big issue for CVS recently was its quarterly financial report, which came in below expectations.
The company’s quarterly earnings report, released in May, showed that CVS missed earnings estimates and expects lower profits for the year across its departments, including its pharmacy retail spaces.
5. Where did CVS lose money?
One of the biggest issues for CVS is that it owns health insurance company Aetna, which has been struggling.
CVS also lost a few major clients who used its CVS Caremark to provide drug coverage for its employees through CVS pharmacy locations. Organizations like Tyson Foods and Blue Shield of California decided to go in a different direction rather than have CVS provide drug coverage for employees.
6. What happens if your store closes?
The good news is that CVS is hoping to make the transition easy for customers as well as employees. If you have a prescription with CVS, the company will transfer it to a nearby CVS.
You may also see some of your favorite pharmacists at the next location as CVS transfers current employees to new locations when possible.
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CVS isn’t alone when it comes to shutting down pharmacy locations. Other major pharmacy chains have also announced store closings.
Rite Aid started shutting down 500 locations across the country after the retailer filed for bankruptcy last year. One of the company’s most recent rounds of closures were particularly difficult for stores in Michigan and Ohio.
Walgreens has also struggled recently and announced its own store closures this year. The company also slashed prices on more than 1,000 items to try and bring back consumers who were stung by inflated prices.
8. More consumers are shopping online
Pharmacy sales might be slumping due to online retailers that give consumers a more competitive price compared to having a prescription filled at a local pharmacy.
Some consumers are switching to places like Amazon Pharmacy or Cost Plus Drugs, owned by Mark Cuban, to help them keep more cash in their pockets.
9. Where can you go instead?
While CVS is transferring prescriptions to other locations when it closes a store, that new location may not be the best option for you.
Check online retailers like Amazon Pharmacy or Cost Plus Drugs to see if you can get a better deal on your prescriptions.
You can also choose a different local pharmacy, including independent neighborhood pharmacies, rather than relying on a national chain to fill your prescriptions.
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It may be frustrating to have your local pharmacy close down, but it can also be a good way for you to find new options to save money.
You can check online to see if there are ways to save cash by moving your prescriptions to an online retailer or take advantage of a great Costco hack and have your prescriptions moved to the bulk retailer’s pharmacy.
It’s also a good idea to use mobile apps like GoodRx, WebMDRx, or Pharmacy Checker to compare costs.
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